My last update for Sirius XM Holdings (SIRI) was back in March 2017 and it was titled “3/21/2017 – Sirius XM Holdings (SIRI) Stock Chart Update“.

In that previous SIRI update, I mentioned that SIRI’s share price was poised to continue its uptrend and continue making new highs.

Trendy Stock Charts members have not been disappointed. Let’s review the uptrend’s status on a shorter-term basis as SIRI’s share price has had some volatile price swings over the last couple of weeks.

Sirius XM Holdings (SIRI) – Bearish Warning

This first chart is a 2 year weekly candlestick chart. Because of the Bearish Engulfing candlestick pattern that developed last week, the risk for SIRI’s share price is to the downside until SIRI makes a new 52 week high. A Bearish Engulfing candlestick pattern is a bearish reversal candlestick pattern. The candlestick pattern was also confirmed by increased selling volume.

The gray shaded box represents the best area to look to repurchase any sold shares or to make a scale-in purchase of shares to add to the portfolio. This would be SIRI’s second major re-test of its breakout area. The second re-test should be the last.

If SIRI’s share price can make a new 52 week high in the next 2 weeks[s2If !current_user_can(access_s2member_level1)]….

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So you are not a Trendy Stock Charts member? Then consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)], hold off from selling any long-term shares as SIRI’s share price should be heading even higher. But with the development of a bearish reversal candlestick pattern, the risk of a pullback looms and is more probable that a new 52 week high.

Any pullback below the $5 price level will most likely be quick in nature as SIRI’s main supporting trendline currently sits around the $5 price level.

SIRI – Moving Average Analysis

This next chart is a 1 year daily chart to look at support for SIRI’s share price using moving average lines.

Monitor the 50 Day moving average over the next several days. If SIRI’s share price can stay above the 50 Day moving average during that time frame, then the possibility for SIRI to make a new 52 week high and continue its uptrend is greatly increased.

However, if SIRI’s share price breaches the 50 Day moving average and falls below it, remain patient and look to purchase shares in the $4.60 – $5 price level.

Sirius XM Holdings (SIRI) – Summary

While SIRI’s uptrend continues, it appears to be in a period of consolidation. Monitor SIRI’s price action closely over the next 2 weeks to determine its probable direction for the next several that follow.

Monitoring SIRI’s share price using the 50 Day moving average will help determine its course of action over the next couple of weeks. Unless SIRI’s share price breaks through the resistance area from the Bearish Engulfing candlestick pattern with buying volume that is greater than normal, it probably represents a short-term profit taking area.

Ask for any updates below or in the Idea Chamber!

On deck: Apple (AAPL)

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